Rédaction Africa Links 24 with A. CHANNAJE
Published on 2024-03-04 17:06:00
The Heritage Foundation, a US think tank, recently released its Annual Index of Economic Freedom for the year 2024, placing Morocco at the 101st rank globally, with a score of 56.8 out of 100. Launched in 1995, the Index, now in its 30th edition, evaluates 184 global economies in four major areas related to economic freedom, namely: the rule of law, the size of government, regulatory efficiency, and market openness. Twelve quantitative factors were used to calculate the Index: Property Rights, Government Integrity, Judicial Efficiency, Public Expenditures, Tax Burden, Fiscal Health, Business Freedom, Labor Freedom, Monetary Freedom, Trade Freedom, Investment Freedom, and Financial Freedom. Based on the scores obtained (ranging from 0 to 100), countries are classified into five categories based on the estimated level of economic freedom. Countries with the highest scores (between 80 and 100) are considered economically “free”. Following them are economies that are “mostly free”, then “moderately free”. Next are countries with “little economic freedom”, and finally those considered “repressive” in this regard.
Morocco, ranked 9th in the MENA region…
According to this ranking, Morocco’s economic freedom score is 56.8, placing it at the 101st rank in the 2024 Index of Economic Freedom. However, its score has decreased by 1.6 points compared to last year (97th globally with a score of 58.4 points).
On the other hand, Morocco is ranked 9th out of 14 countries in the Middle East and North Africa (MENA) region. The Kingdom’s economic freedom score is below the global average (58.6) and regional average (57.4), as indicated in the report. Nevertheless, the report states that Morocco has made significant and notable economic reforms that encourage private sector dynamism.
“The competitiveness has improved and the productive base has diversified. Some challenges require deeper institutional reforms. The procedures for creating and registering private companies are now more streamlined,” notes the US think tank.
However, it points out that labor market rigidity still hinders dynamic employment growth, and a large part of the workforce remains marginalized in the informal sector. Conversely, it highlights that monetary stability in Morocco remains “maintained with relatively moderate inflation.” In detail, The Heritage Foundation reveals that the country’s score for property rights is 57.6; while in judicial efficiency, it is 32.9. In terms of government integrity, Morocco scores 33.9.
Regarding business freedom, the points obtained are 68.5. As for labor freedom, the score is 48.6; while in terms of monetary freedom, it stands at 71.1. Trade freedom, investment freedom, and financial freedom score 67.4, 65, and 70 respectively.
The same source also mentions that “the average tariff rate weighted by trade is 11.3%. Foreign and domestic investors are generally treated equally under the law. The competitive financial sector continues to grow and offers a range of financing options. The stock exchange does not restrict foreign participation.”
Furthermore, in terms of taxation, the report deems individual income tax rates (38%) and corporate tax rates (32%) in Morocco to be high. “The tax burden is equivalent to 27.1% of GDP. Average public expenditures over three years and the budget balance are 32.6% and -6.1% of GDP respectively. Public debt stands at 71.5% of GDP.”
… and first in North Africa
For comparison, this ranking shows that Morocco, like last year, outperforms its North African neighbors, namely Algeria (ranked 164th), Tunisia (150th), Egypt (146th), and Mauritania (ranked 110th). For Libya, the ranking did not consider it due to a lack of reliable data.
In the MENA region (Middle East and North Africa), the top spot is taken by the United Arab Emirates (22nd globally), followed by Israel (26th) and Qatar (28th). In Africa, Mauritius (19th globally) tops the ranking. The 2nd and 3rd spots go to Botswana (36th) and Cape Verde (57th) respectively.
At the global level, Singapore retains its position as the freest economy in the world. Switzerland closely follows in 2nd place, with Ireland (3rd), Taiwan (4th), and Luxembourg (5th) completing the top five.
North Korea, Cuba, Venezuela, Sudan, and Zimbabwe remain the least economically free countries in the world, according to the 2024 ranking by The Heritage Foundation.
Read the original article(French) on L’Opinion
